The law firm will represent the authority in the U.S. Bankruptcy Court in the Chapter 11 bankruptcy filing by Ball Ground Recycling owner Jimmy Bobo.
The Cherokee County Board of Commissioners also approved bringing on the law firm during its meeting on Tuesday.
County Attorney Angie Davis also informed the authority the motion for the court to grant a relief from the bankruptcy stay will be heard at 2 p.m. June 29 in the court.
She said attorneys plan to file a motion or joinder in which the county expresses support in the RRDA’s motion to get a relief from the bankruptcy stay.
Attorneys also plan to file a reservation of rights letter, which details the rights of the authority, she told commissioners.
The authority met in executive session to discuss real estate and litigation, but took no action upon returning.
The RRDA has a lease agreement with Jimmy Bobo to allow him to operate his company on the property and use equipment owned by the county.
Bobo, who completed the company’s bankruptcy filing last month, was under a lease agreement with the Development Authority to pay $100,000 a month in bond payments on $18.1 million borrowed by the authority to purchase land and equipment for the operation.
Bobo had made payments for about two years, or about $2 million in payments on the debt.
The county was notified last year by the Bank of New York that Bobo was no longer making payments into the escrow account, and the county was obligated to start making the payments.
The county had to make $1.2 million in payments last year and still has to pay an additional $608,171.28 this year.
A total of $1.2 million was originally due on a yearly basis, with the county placing $101,000 into an escrow account for the purpose of making semi-annual debt service payments.
The commission in February moved $1.8 million out of Special Purpose Local Option Sales Tax funds into the general fund to cover the payments on the debt after Bobo failed to make payments owed on the bonds the county had guaranteed.
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